Microsoft might soon announce a new "Music" service designed for Xbox users, as well as for the Windows Phones owners. According to CNet article, the Redmond software giant is in talks with with some of the major record companies about creating a music service to serve Xbox and an upcoming Windows-based phone.
The article reports "The software maker, which has a spotty record in digital music, has discussed creating a delivery service that would supply tunes to the Xbox as well as an upcoming Windows-based phone, according to sources 'with knowledge of the talks.'"
The music service which is expected to launch sometime this year, could include streaming music as well as downloads, but it is unclear exactly "how this will differ from Microsoft's Zune Music Pass, which is the music service currently available to Xbox subscribers."
Since Microsoft already operates the Zune Music Pass, the company already possesses music licenses. It's still unclear whether Microsoft must acquire new licenses for its service and that will depend on how Microsoft wants to do with the music.
The sources added that the company has also mentioned the possibility of teaming with HTC and Nokia on the proposed phones.
A spokeswoman for the company said, "Microsoft does not comment on rumors and speculation."
"Expect the labels to work hard to make this deal happen. While Microsoft's past forays into Web music haven't met with much success (the mothballed Zune digital music players and defunct Urge music service), the record companies will welcome the chance to have a higher profile on the Xbox, with its 40 million worldwide Xbox Live subscribers, as well as on any new Windows phones," the article notes.
Amd, that Microsoft already has license deals when it comes to music and this will certainly prove beneficial in the shaping of the new offering.